Federal Trade Commission, Plaintiff v. Forensic Case Management Services, Inc. d/b/a Commercial Investigations, Inc., FCMS, Inc., Commercial Recovery Solutions, Inc., and Rumson, Bolling & Associates; Specialized Recovery, Inc. d/b/a Joseph, Steven & Associates and Specialized Debt Recovery; Commercial Receivables Acquisition, Inc. d/b/a Commercial Recovery Authority, Inc. and The Forwarding Company; David M. Hynes II a/k/a David M. Hynes, Jr.; James Hynes; Kevin Medley; Heather True; Frank E. Lindstrom, Jr.; and Lorena Quiroz-Hynes a/k/a Lorena Quiroz and Lorena Hynes, Defendants.
(United States District Court for the Central District of California)
Case No. CV-11-7484
FTC File No. 112 3035
September 30, 2011
- Complaint for Preliminary and Permanent Injunction and Other Equitable Relief (Seal Lifted)
- Ex Parte Temporary Restraining Order with an Asset Freeze, Appointment of Receiver, Expedited Discovery, and Other Equitable Relief, and Order to Show Cause Why a Preliminary Injunction Should Not be Entered
- Preliminary Injunction and Order Continuing Asset Freeze and Other Provisions of the TRO, and Appointing a Permanent Receiver (Seal Lifted)
- News Release
For Release: 09/30/2011
At FTC's Request, Court Orders Debt Collector to Stop Deceiving Clients and Abusing ConsumersAt the request of the Federal Trade Commission, a U.S. district court has halted an operation that allegedly subjected consumers to abusive debt-collection practices and deceived the small-business clients for whom it collects. The order also freezes the operation's assets and appoints a permanent receiver to run it while the FTC moves forward with the case.
As part of its continuing crackdown on scams that target consumers in financial distress, the FTC filed a complaint against six individuals and three companies involved in a Van Nuys, California-based debt-collection operation doing business as Rumson, Bolling & Associates.
The FTC complaint charges that the defendants, in collecting debts on behalf of their clients:
- harassed and abused consumers by threatening physical harm and death to them and their pets, threatened to desecrate the bodies of deceased relatives, and used obscene and profane language;
- improperly revealed consumers' debts to third parties, such as the consumers' employers, co-workers, neighbors, and family members;
- falsely threatened consumers with lawsuits, arrest, seizure of their assets, or wage garnishment; and
- falsely claimed that consumers would be liable for legal fees incurred in the collection of the debt.
The FTC charges that these practices violate the Federal Trade Commission Act and the Fair Debt Collection Practices Act.
For consumer information about dealing with debt collectors, see Debt Collection FAQs: A Guide for Consumers.
The Federal Trade Commission would like to thank the Better Business Bureau of Ventura, Santa Barbara, and San Luis Obispo Counties (California) and the Better Business Bureau of the Southland, in Southern California, for their assistance in bringing this case.
The Commission vote authorizing the staff to file the complaint was 5-0. The FTC filed the complaint and the request for a temporary restraining order in the U.S. District Court for the Central District of California on September 12, 2011. On September 13, 2011, the court granted the FTC's request for a temporary restraining order with an asset freeze and the appointment of a temporary receiver. On September 27, 2011, the court granted the Commission’s request for a preliminary injunction and an order continuing the asset freeze and appointing a permanent receiver.
The complaint names as defendants Forensic Case Management Services, Inc. (doing business as Rumson, Bolling & Associates, FCMS, Inc., Commercial Recovery Solutions, Inc., and Commercial Investigations, Inc.), Specialized Recovery, Inc. (doing business as Joseph, Steven & Associates and Specialized Debt Recovery), Commercial Receivables Acquisition, Inc. (doing business as Commercial Recovery Authority, Inc. and The Forwarding Company), David M. Hynes II, James Hynes, Kevin Medley, Heather True, Frank E. Lindstrom, Jr., and Lorena Quiroz-Hynes.
NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC's website provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.
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